ENE - down to 2 bucks, code red, code blue, funeral plans. the real problem with ENE is not ENE, but that it could take down the whole energy trading sector, which has become the main source of supply of energy. in the old days, electric plants produced energy, and sold it to their customers. with deregulation, generating capacity was sold to companies like ENE, DYN, REI, DUK, ILA, and they brokered sale of energy to the states and custormers (see how wonderful it worked in California last year!).
With the demise of ENE, companies are unwinding positions, and not trading with ENE. hopefully swaps will be worked out to maintain the system. otherwise, we are in free fall (the energy swaps, not ENE) and there is no concept of where it will go. mini- LTCM in the making. ENE now at 1.60 and falling. jeez. larry |
